UK - Schemes should only change their third-party administrator as a last resort, independent technology and administration consultant Dunnett Shaw says.
Typically, schemes switch providers because of poor working relationships, complaints or poor quality delivery.
But Dunnett Shaw warned schemes over the amount of time and effort required to switch between TPA providers successfully. It said trustees should only change providers if they could not salvage anything from their working relationship.
Dunnett Shaw partner Ian McQuade said: “Moving to another third-party administrator costs schemes time, money and causes them aggravation. If there’s something to save, you have to try.”
He added if schemes were determined to switch providers it was critical they understood their exit position, as “planned exits are less painful”.
Schemes must be aware of the timescale involved in switching providers, the service impact, costs, any penalties contained within their contract and the issue of who owns the data and files.
McQuade said that while trustees “ultimately owned” everything about their scheme, they must be wary of the fact that some contracts would state that the TPA would be allowed to keep certain files and processes and not have to hand them back.
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